Will economic slow down affect corporate salaries?

It's tough time for Indian companies, as there is recession of US economy and back home the nation is reeling under the pressure of inflation. Indian corporate sector has set itself to adjust the adverse effects of slow down of us economy and economical factors in India. According to a study, during the slow down of US economy the salary structure of Indian companies were not affected.

The year 2008 has seen a strong average salary increase of 14.8 per cent, according to Hewitt Associates study conducted to understand the impact of economic slowdown on compensation and salary trends. The global economic slowdown, US sub-prime crisis and rising inflation have prompted the companies to revise budget for 2009, during which the average salary is expected to dip at 13.9 per cent, the study said. Any such speculation was not become true. The bottom line is that even during the slow down of US economy, the corporate salries were unaffected.